Ethereum (Ether) Mining
While Ethereum is currently proof of work, it is expected to become proof of stake in its next update.
Blocks & Block Reward
Blocks are generated on average every 12 seconds. The block reward is 5 ETH.
Ethereum Cloud Mining
Genesis Mining is the largest Ether cloud mining provider. Ethereum cloud mining contracts are available for purchase and the prices are as follows:
1MH/s = $44 (1 Year Ether Mining)
25 MH/s = $1100 (1 Year Ether Mining)
100 MH/s = $4400 (1 Year Ether Mining)
You can also read this cloud mining guide to learn how to mine Ether using Amazon’s cloud servers.
Ethereum Mining Profitability
As with any cryptocurrency, Ethereum mining profitability depends on many factors. The hash rate of your miners in relation to the total network hash rate will determine your share of earnings. Your earnings can also vary depending on Ether’s price relative to fiat currencies like the US dollar.
More efficient mining hardware will also increase profitability. The more efficient your hardware can convert electricity to Ether, the higher your profit margins.
An Ethereum mining profitability calculator can be used to determine a rough estimate of your earnings based on your hash rate, the network hash rate, block time, and the price of one ETH. Two examples of calculators can be found at EtherScan and Badmofo.
Ethereum Mining Pools
Although Ethereum has only recently gained popularity, there are already a few Ethereum mining pools. The two most popular pools are:
Get an Ethereum Wallet
If you’re serious about mining Ethereum, download an Ether wallet. You’ll need a secure wallet to store your mining rewards.
Ethereum GPU Mining
It’s possible to GPU mine Ethereum using Geth. You’ll need to have some familiarity with the command line in order to get started.
Ethereum Mining vs Bitcoin Mining
Bitcoin mining and Ethereum mining are quite different. Ethereum’s development team is more centralized and can therefore can plan and implement POW changes. The Ethereum development team currently has plans to change Ethereum from proof of work to proof of stake. Changes to the mining algorithm are much harder to implement with Bitcoin and aren’t likely to happen.
Ethereum’s block time is set at 12 seconds per block, while Bitcoin blocks are found on average every 10 minutes.